Meaning and Scope of Managerial Economics

Emergence of managerial economics as a separate course of management studies can be attributed to at least three factors.:

(a) growing complexity of business decision making process due to changing market conditions and business environment
(b) consequent upon, the increasing use of economic logic , concepts theories and tools o economic analysis in the process of business decision making
(c) Rapid increase in demand for professionally trained managerial manpower

The growing complexity of business decision- masking has inevitably increased the application of economic concepts, theories and tools of economic analysis in this area. The reason is that making an…show more content…

Example

Footwear Industry: Shoes may became outdated because fashions change very rapidly
Dressmaking Industry : As fashion changes very often, the manager of a dress making industry will have to keep abreast of changing fashions.

The Problem of forward planning

When a manager has to plan for the future he has to make an accurate forecast of the position of raw materials, the prices of factors of production, the market prices of his products , the demand for then ,etc.

SCOPE OF MANAGERIAL ECONOMICS

In general, the scope of managerial economics comprises all those economic concepts, theories and tools of analysis related to demand prospects, production and cost, market structure, level of competition and general business environment to find solutions to practical business problems. In other words, managerial economics is economics applied to analysis of business problems and decision making.

The areas of business issues to which economic theories can be directly applied can be broadly divided into two categories :

1. Microeconomics app

The scope of managerial economics emanates from the solutions it offers to the manager who is confronted with problems such as :

examine the role of regulations on monopolists.
Theoretical Review
Classical economics is built on the metaphor of the invisible hand and principles of supply and demand. Traditionally, market should allow sellers to choose without any hindrance what to produce is epitomized by the notion. This section will examine the monopolists through the traditional scope of economics. The economics of monopoly differ from the economics of a perfect competition. The role of markets and supply, demand, revenue differ…

Running Head: The Managerial Economics of Dell Incorporated 1
The Managerial Economics of Dell Incorporated “Our business is about technology, yes. But it 's also about operations and customer relationships.” (Dell, n.d.). Dell Incorporated produces electronics products, including, but not limited to; laptop computers, desktop computers, audio equipment, monitors, and printers. Michael Dell dropped out of college in his freshman year in 1984 and founded his new computer business under the name of…

tickets.
Rachel Green, manager for the Sherman Oaks office, has been asked to recommend an appropriate level of advertising. In thinking about this problem, Green noted its resemblance to the optimal resource employment problem studied in a managerial economics course. The advertising/sales relation could be thought of as a production function, with advertising as an input and sales as the output. The problem is to determine the profit-maximizing level of employment for the input, advertising, in…

well-being of our society. Thus, all of society is indirectly involved in the firm’s operation. Firms exist because they are useful in the process of allocating resources --producing and distributing goods and services. As such, they are basically economic entities
Q2.
A. The most direct effect of a requirement to install new pollution control equipment would be an increase in the operating cost component of the valuation model. Secondary effects might be expected in the discount rate due…

MB0042 - Managerial Economics
ASSIGNMENT SET I:
Ans.1. The price elasticity of demand is not the same for all commodities. It may be or low depending upon number of factors. The factors which influence price elasticity of demand, in brief, are as under:
(i) Nature of Commodities. In developing countries of the world, the per capital income of the people is generally low. They spend a greater amount of their income on the purchase…

MANAGERIAL ECONOMICS
MANDIP SINGH SETHI
K1300050
TABLE OF CONTENTS
INTRODUCTION…………………………………………………………………………………………………..3
TYPES OF DISECONOMIES………………………………………………………………………….5
DECENTRALIZATION…………………………………………………………………………………6
CONCLUSION……………………………………………………………………………………………..7
REFERENCE……………………………………………………………………………………………….8
What are managerial diseconomies of scale and what, if anything, can be done about this phenomenon?
Decreasing…

MBA 5600 Managerial Economics
Assignment #1
1. What impact will the prospect of deprivatization have on investment by managers of privatized firms?
The impact will be:
- Loosing corporate focus;
- Missing planned CEO turnover;
- Affecting planned managerial objects and strategic efficiency
Obviously, normal managers invest in long-term projects, products and services, deprivatization may come up with a different strategy that not aligned with corporate goals and its profit will probably…